By Paul Sankey
Published on April 27, 2021 at 8:57 AM
One thing you get from looking at the BP and Tesla results side-by-side: BP could learn a lot from Tesla about fonts. I find the BP “rich-kindergarten-teacher” font irritating. Tesla results are beautifully presented, to my eye, distressed alloy on black. In this note, we consider Tesla decline rates briefly. That theme will be a long-term one for us, much as we have highlight decline rates in wind and solar. Even with my begrudging […]
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By Paul Sankey
Published on April 7, 2021 at 9:14 AM
Shell’s results are like a box of chocolates: you never know what you are going to get. This cashflow and earnings volatility, of course, is bad for the multiple. At the simplest EV/EBITDA level, Shell trades in the bottom decile of 40 major oil companies, between Southwestern and Ovintiv, a remarkable indictment of market uncertainty over earnings… strategy… management. Based on the company’s Q1 2021 earnings guidance, the stock just got more expensive, as the […]
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By Paul Sankey
Published on March 11, 2021 at 9:17 AM
The first slide considered at the Chevron virtual analyst meeting 2021 was pretty depressing. The company showed an adjusted ROCE of 2.9% and a plan to get this to 10% by 2025. On a day when Tesla had the biggest single move by any stock in history (20% up move added $140bn, or more than the entire value of TOTAL in one day) the investment merits of a major oil taking its ROCE from 3% […]
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